Toyota has witnessed a significant surge in sales of electrified vehicles in the U.S., with hybrids and plug-in hybrids leading the way and accounting for 43% of the company's sales volume in 2024, up from 29% in 2023. The automaker is on track to exceed 50% electrified sales in 2025, propelled by the strong performance of these eco-friendly models. Toyota's focus on hybrids and plug-in hybrids has proven successful, with the Camry midsize sedan now exclusively available as a hybrid variant. A pivotal factor in Toyota's electrification strategy is the upcoming North Carolina battery plant, which is set to enhance the supply chain for hybrids and electric vehicles. The plant, announced in 2021, will initially produce battery cells for hybrids and EVs, with a subsequent $2.5 billion expansion aimed at bolstering EV battery manufacturing capacity. This expansion aligns with Toyota's plans to introduce more EVs to the U.S. market, complementing its current offerings like the bZ4X. Furthermore, Toyota's North Carolina facility is expected to supply batteries for a forthcoming Kentucky-made three-row electric SUV starting in 2026. While the company contemplates phasing out traditional internal-combustion cars in the U.S., hybrids and plug-in hybrids are likely to remain predominant in its electrified vehicle lineup. Despite challenges faced by the Mirai hydrogen fuel-cell sedan, limited to California due to slow sales, Toyota remains committed to sustainability and reducing emissions through its diverse electrified vehicle portfolio.